D, —1.

TOURIST AND HEALTH RESORTS. The expenditure was £13,683, as against £12,880 for the previous year, the main items of which were the purchase of a launch for Milford Sound, new outdoor bathhouse at Morere Hot Springs, and additions to the Te Anau Hotel and to Lake House, Waikaremoana. During the current year it is proposed to proceed with the erection of staff quarters at the Chateau Tongariro, huts in the Eglinton Valley, extensions to the Rotorua electric system, and additions to the Hotel Milford, Milford Sound. TELEGRAPH EXTENSION. The expenditure on telegraph extension by the Post and Telegraph Department for the financial year in respect of telephone, telegraph, and radio services throughout the Dominion amounted to £195,37'9, as against £135,933 for the year ended the 31st March, 1935. The long-distance toll service was further improved by the establishment of a three-channel carrier current system for direct operation between Auckland and Wellington. The installation of this system has provided an additional toll outlet between Auckland and Wellington, thus increasing the number of direct outlets between those centres from two to three and enabling better facilities to be made available for emergency purposes via alternative routes. In addition, the installation of several new single-channel carrier current systems provided additional highgrade direct toll circuits between Auckland and New Plymouth, Auckland and Palmerston North, Palmerston North and Wellington, Palmerston North and Masterton, and Wellington and Napier. The telegraph offices at Whangarei, Hamilton, Rotorua, Masterton, Blenheim, Nelson, Westport, Greymouth, Timaru, Oamaru, and Invercargill, which were hitherto wholly morse offices, were equipped with teleprinter apparatus for the despatch of telegraph traffic to and from their main distributing or controlling centres. Additional teleprinter equipment was installed, at each of the main distributing centres—viz., Auckland, Wellington, Christchurch, and Dunedin—to provide new teleprinter channels between Auckland and Whangarei, Auckland and Hamilton, Auckland and Rotorua, Wellington and Masterton, Wellington and Blenheim, Wellington and Nelson, Christchurch and Westport, Christchurch and Greymouth, Christchurch ancl Timaru, Christchurch and Oamaru, Christchurch and Invercargill, and Dunedin and Invercargill. Additional multiplex equipment also was installed at Auckland, Wellington, and Christchurch to meet special demands during exceptionally busy periods. Throughout the year new telephone-exchange connections continued to exceed relinquishments, the net gain in subscribers being 5,255, as against 2,200 for the previous year. Although the peak number of main subscribers reached in 1930 has not yet been regained, it is pleasing to record that the grand total of telephone installations of all kinds in the Dominion at the close of the year (166,565) is approximately 200 in excess of the number recorded in 1930. The position in this respect is due largely to the marked increase in extension stations, which now total 30,598, compared with 26,698 in December, 1930, an increase of 3,900 ; and it indicates that the advantages of the auxiliary telephone-equipment facilities provided by the Department are realized by the business community. A number of the new subscribers for the year were former telephone-exchange subscribers who could be reconnected with a minimum of expense, but in many instances demands for telephone service are being received from new areas which have not previously been reticulated fully. In these cases the necessary cabling, &c., is being proceeded with as fast as is practicable. It has not been necessary to make large additions to the automatic telephone-exchange switching-equipment, but additional two-party-line equipment has been installed at the Auckland Central, Wellington Central, and Dunedin Central Exchanges, while such equipment has been provided initially at the Onehunga, Takapuna, and Oamaru Exchanges. In so far as magneto exchanges are concerned, the major construction works were the installation of branching multiple switchboard equipment at Morrinsville and Rangiora, and the removal of the latter exchange to the new building. A considerable amount was spent during the year in the purchase

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